MUHIBAH has been trading on an uptrend channel for the past six months, with the underlying trading supported by all its SMAs. Despite approaching overbought territory, we gathered from its historical trading pattern that both Stochastic and RSI could trend and hover around this level during an uptrend. Moreover, MACD histogram has also performed a positive crossover, suggesting bullish momentum. Should the buying interests persist and daily trading volume pile up, we reckon that the share price could ride on the bullish momentum to retest its 7-month high resistance level of RM2.82 (R1) in the near-term. Meanwhile, immediate support level is at RM2.58 (S1).

Source: Kenanga Research - 21 May 2015